Real estate investors and other professionals are all wondering, what will happen to the real estate market, now that first-time homebuyer tax credits have expired (for all but military and certain federal personnel- see my previous blog)?
Financial experts disagree on the potential impact. Economists are of the unanimous opinion that homebuyer tax credits helped boost demand and sell more houses, although how many of those sales would have occurred anyway is unknown. The National Association of Realtors thinks that only 18% of the estimated two million home sales in the last two years would not have occurred without the tax credits. Yet persistently high unemployment and the large number of foreclosures present formidable obstacles to a full economic recovery.
The good news is that housing sales are up, mortgage rates are still at historical lows, and housing prices continue to stabilize in much of the country. Spring time is traditionally a strong season for home buying in the Pacific Northwest. I'll be keeping my eye on sales in the region, and keep it posted here on the "Seattle Real Estate Investor" blog....
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